Approval of Chiller Replacement.
The Halls' chiller failed in late July of 2021 in such a way that repairs were not feasible and a complete new unit is required. The procurement of a replacement chiller has been delayed due to extenuating financial and administrative circumstances. It is imperative that efforts continue for procurement and installation of a replacement chiller to make ready for the return of students in August 2022 and if a replacement chiller is not available and installed at the beginning of the fall semester 2022, a temporary chiller installation is necessary, if available.
The estimated cost for the chiller replacement is $260,000. State Risk insurance will reimburse KSU for actual cost of permanent chiller replacement less a $5,000 deductible. The total liability to KSU will be $5,000.
The estimated cost for a temporary chiller is $115,000 not to exceed $200,000 and is not covered by insurance. The total liability to KSU is estimated to be between $115,000 to $200,000.
Estimated costs are based on previously experienced actual costs that have been increased to anticipate possible current market and supply chain economic conditions. Actual costs are uncertain at this time until final procurement efforts are completed.
Director Cable recommends that the Board of Regents approve the Chiller Replacement.
Approve the Chiller Replacement.